New York The United States rejected an Iranian proposal concerning the strategic Strait of Hormuz after Tehran reportedly demanded access to billions of dollars in frozen Iranian assets, according to US Ambassador to the United Nations Mike Waltz. Waltz said the proposal was discussed amid ongoing efforts to address tensions surrounding the Strait of Hormuz, a crucial waterway through which a significant share of global energy shipments passes. He indicated that Washington did not accept Tehran’s demand for the release of frozen assets as part of the arrangement. The comments come against the backdrop of heightened diplomatic and economic tensions between the United States and Iran. The status of Iranian funds frozen under US sanctions has remained a longstanding point of contention between the two countries. According to the report, Waltz characterized the financial demand as a key reason for Washington’s rejection of the proposal. The US position reflects its continued use of sanctions and restrictions on Iranian assets as part of its broader policy toward Tehran. The Strait of Hormuz has repeatedly featured in disputes involving Iran and Western countries because of its importance to international energy markets. Any disruption to commercial shipping through the waterway could have wider implications for oil and gas supplies and global prices. Iran has previously opposed measures that it considers restrictions on its sovereignty or economic rights and has sought relief from sanctions and access to blocked financial resources. The United States, meanwhile, has maintained restrictions on Iranian entities and assets under various sanctions regimes. Waltz’s remarks underscore the continuing gap between Washington and Tehran over both security arrangements around Hormuz and the handling of Iranian financial assets. The report did not indicate that an agreement had been reached following the rejection of the proposal. Further diplomatic discussions could depend on whether the two sides can narrow their differences over sanctions, frozen assets and maritime security.